Is it the Right Time to File Bankruptcy?

Bankruptcy is typically a last resort for people who are struggling to pay off high amounts of debt. For this reason, making the decision to file is a very difficult one. Still, bankruptcy can provide you with a fresh financial start by making debt more manageable or by eliminating it altogether. It is important to know there are some drawbacks to filing bankruptcy, such as the hit your credit score will take. So, how do you know when it is time to file or consider other options? Below, our Orlando bankruptcy lawyer outlines three signs that it may be time to file.

You Start Ignoring Bills 

If you have a lot of debt, you probably also have many creditors and debt collectors sending you overdue bills, collection notices, and more. Receiving this type of communication can be very stressful and overwhelming and it is not uncommon for people to want to simply ignore the correspondence. It is important that you do not ignore the mail that comes in because you could overlook legal action being taken against you. If you are tempted to ignore the mail, it may be time to speak to an Orlando bankruptcy lawyer.

Creditors Call on a Regular Basis 

The Fair Debt Collection Practices Act prohibits debt collectors from harassing behaviors. They cannot call you many times a day and they cannot contact you late at night or very early in the morning. Unfortunately, some debt collection companies violate the law.

If you feel as though a debt collector has harassed you, it may be possible to take legal action against them. Still, it is also probably time to file bankruptcy. As soon as you file, a bankruptcy judge will issue an automatic stay that prohibits debt collection companies from contacting you at all until your bankruptcy case is finalized.

Your Income is Not Sufficient to Cover Your Expenses 

If you do not earn sufficient income to cover your debt as well as your daily expenses, you may want to consider filing bankruptcy. It will likely be very difficult to catch up on these expenses if you cannot increase your income somehow. Filing for bankruptcy can help you eliminate most or all of your unsecured debt such as credit card debt, medical bills, and utility bills that you still owe. Even if you cannot eliminate your debt, bankruptcy will allow you to restructure it. This can make it more manageable to repay, as you will have three to five years to pay it.

Our Bankruptcy Lawyer in Orlando Can Help if it is Time to File 

Making the decision to file bankruptcy is never easy, but it is sometimes necessary. If you feel as though now is the time to file, our Orlando bankruptcy lawyer at Anderson & Ferrin, P.A., can help you navigate the process so you have the best chance of obtaining a favorable outcome. Call us now at 407-412-7041 or chat with us online to schedule a free initial consultation with one of our experienced attorneys.

Sources:

law.cornell.edu/uscode/text/11/chapter-7

ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text